If you really want to financially secure your family’s future, then a term insurance policy may be your best bet. A typical term insurance policy works by mitigating the risk of early demise of the breadwinner and works as an income replacement tool for the dependents of the family. Life can be unpredictable and if something were to happen that leads to your unfortunate demise then your family may face the brunt of financial burden. A term insurance plan is highly beneficial in this aspect.
But when you buy a term plan, you may note that many insurers or agents also try to sell you riders on top of the term insurance plan. These riders offer extra benefits at the expense of an added premium. One may wonder whether these add-ons and optional features are actually useful or should one just go for the vanilla term plan.
Let us decode whether these add-ons and riders are beneficial and whether you should take them in addition to your term plan. Given below are some common types of riders.
Accidental Death Benefit Rider
If the policy holder meets with their unfortunate demise by way of an accident, then an accident death benefit rider would entitle the beneficiary to an additional death benefit amount under accidental death over and above the original term insurance cover.
Critical Illness Rider
If, during the policy term, the policyholder is diagnosed with a critical illness, then this rider can give them additional coverage for the same. Critical illnesses can include heart attack, stroke, kidney failure etc.
Accident Disability Rider
If the policy holder is disabled due to an accident, then an accidental disability rider would provide an additional cover to them. This can depend on the terms of the policy since the disability may be partial, complete, permanent or temporary. Ensure you understand carefully since there can be some confusion regarding the terminology.
Premium Waiver Rider
If the policyholder meets with an accident and is disabled partially or completely, then according to the terms of the rider, they ‘are entitled to a total waiver of the remaining premium payments. During such trying circumstances a rider like this can really be a lifesaver since you can enjoy the benefit of the term policy without paying additional premiums.
Benefits of These Riders
Now that we know what benefits these riders can provide, are they really helpful? Looking at the benefits, no one can deny that these riders and add-ons may actually be useful. They provide an additional cover on top of your term plan so that if an unforeseen situation arises, you’ll be able to handle it.
Riders can be useful because:
- They can provide a much more comprehensive cover besides the vanilla term insurance.
- Riders are extremely affordable since these benefits can be availed with a small addition of premium.
- Add-ons offer flexibility since policyholders can customize these additional benefits according to their needs.
To conclude, we believe these add-ons and optional features do make a difference and in case you’re wondering whether to get them, we advise you consider your requirements and add riders as per your needs.
